Investment bank Barclays Capital, subsidiary of London-based Barclays PLC, has stated that economic growth in China and India will slow down due to the reduced sales volumes of their domestic auto industries.
Based on the auto sales situation in April, China's auto sales for the whole of 2011 are expected to decrease by 0.25 percent year on year to 1.55 million units. China's largest foreign auto company General Motors has reported that its sales volume in April in China totaled 203,400 units, decreasing by 4.6 percent compared with the same month last year.
Soaring fuel prices, supply shortages due to the massive earthquake which hit Japan on March, and auto purchase restrictions in major cities in China have all impacted Chinese auto sales, according to Barclays Capital.